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Equipment Maintenance Insurance

Budget Guard Insurance is an innovative equipment maintenance insurance program that is directly underwritten by a highly rated insurance company and administered by Budget Guard.

Budget Guard Insurance’s equipment maintenance insurance policy was designed with one clear objective in mind. We want to provide the exact level of coverage you desire – for the best possible price. Original equipment manufacturers (OEMs) have long enjoyed little or no competition, allowing them to command healthy profit margins on their service contracts.

Budget Guard Insurance significantly reduces your maintenance costs by consolidating multiple expensive service contracts, with their multiple vendors and varied effective dates, into a single comprehensive equipment maintenance insurance policy. Instead of paying for service that you might not need, with Budget Guard Insurance you only pay a fraction of the cost upfront and the rest only when your equipment needs service.

How Budget Guard Insurance Works

Budget Guard Insurance’s equipment maintenance insurance policy is structured as an aggregate deductible program (ADP). The ADP is a system in which your organization retains and handles the anticipated preventive and corrective (repair) maintenance costs within a predetermined budget, and transfers the risk above that threshold, leaving you with a cap on anticipated maintenance costs. And because you control the maintenance funds, you retain any unspent maintenance dollars at the end of the policy term. Typical savings are between 15% and 20% versus your current annual service contract spend.

For example, let’s say your current annual service contract spend is $1M. With Budget Guard Insurance, you would pay a premium up front, let’s say $200K, and then you have an aggregate deductible that you retain, let’s say $650K. This means that your new maximum program cost is $850K, a guaranteed initial savings of $150K or 20%.

Once coverage begins you utilize the $650K aggregate deductible that you retain to pay for maintenance services as they are performed on covered equipment by the vendors that you choose. If your actual maintenance costs stay under the $650K aggregate deductible, you get to keep the difference, increasing your overall savings. For example, let’s say your actual maintenance costs are $525K. That means there is a surplus balance of $125K, bringing your total savings to $275K or 30% versus your prior service contract spend.

Conversely, if your actual maintenance costs exceed the retained aggregate deductible amount, the Budget Guard Insurance covers the excess amount per the terms and conditions of the policy. For example, let’s say your actual maintenance costs are $725K. That means you are reimbursed the excess amount of $75K, capping your maintenance costs at the $650K aggregate deductible amount and guaranteeing your initial savings.

Long Term Savings

While equipment acquisition costs and high-profit margin goals strongly influence OEM service contract prices, the Budget Guard Insurance premium and aggregate deductible are based on anticipated maintenance costs, and the financial risk of each covered asset is spread across the covered inventory. We strive to keep your costs low year to year by working closely with you to manage costs in a manner that never compromises service quality or equipment uptime.

Equipment Covered

Budget Guard Insurance’s equipment maintenance insurance policy can cover a wide range of electronic equipment asset classes including analytical, biomedical, communications, clinical laboratory, diagnostic imaging, facility, financial, general office, information technology, research laboratory, radiation therapy, security, surgical, and more.

Certain models may not be eligible for coverage due to the availability of parts or service providers. Contact us with any questions that you have about equipment eligibility.

Certain models may not be eligible for coverage due to the availability of parts or service providers. Contact us with any questions that you have about equipment eligibility.

Service Delivery

Equipment service is performed by the vendors you choose, and coverage can include the costs associated with parts, labor, travel, emergency repair, and preventative maintenance. As an added value, all labor is covered 24-hours per day during weekdays with options for weekend and holiday coverage as well.

During program implementation we work with your internal staff to develop a service delivery plan for each covered equipment asset or asset class. This includes identifying the primary service and parts providers and alternatives. We then develop internal procedures so that your end users know how to initiate and report service events.

When your equipment requires service, your staff simply contacts the predetermined vendor to schedule service. The vendor performs the PM or repair and issues a field service report (FSR) and invoices for the service event. The FSR and related invoices are reported to us using a process jointly developed during program implementation. Finally, the covered amount of the service event is applied to the aggregate deductible.

Equipment failure occurs or a PM is due

Call the service vendor to schedule service

Service vendor performs the PM or repair

Service report and invoice submitted to Budget Guard

Covered amount applied to the deductible

Managed Maintenance Program (MMP)

Looking to outsource vendor management? No problem! Our MMP will simplify administration by converting all service calls into one purchase order and one completely accountable program manager.

The underlying Budget Guard Insurance policy is still structured as an aggregate deductible program with the same broad coverage. However, with the MMP, you transfer the retained aggregate deductible amount to us, and we dispatch and pay the vendors directly, on your behalf. The administrative fee associated with this service may be offset by the reduction of your internal administration costs.

This unified approach will improve service quality while saving you time, money, and administrative resources. When your equipment requires service, your staff simply contacts us using procedures established during program implementation and we handle the rest.

Equipment failure occurs or a PM is due

Contact Budget Guard to schedule service

Service vendor performs the PM or repair

Service report and invoice received by Budget Guard

Budget Guard pays the invoice

Transitioning to Budget Guard Insurance

Your transition to Budget Guard Insurance is easy and cost-effective. Your equipment maintenance insurance policy can begin on the exact date existing service contracts expire, helping you avoid the unnecessary expense of overlapping coverage.

We also help you deal with variable service contract and warranty expiration dates by allowing you to add equipment at pro rata costs throughout the policy term, ensuring that your transition to Budget Guard Insurance is seamless and pain-free. In this manner, maintenance for all categories of equipment assets can be transferred to Budget Guard EMI over time, without skipping a beat.

Program Comparison Checklist

Budget Guard Insurance Benefits Extend Beyond Equipment Maintenance

15% – 20% typical initial cost savings range and additional savings up to 30% on average based on program performance

Transparent and unbiased management reports

Freedom to use service vendors of your choice

Expanded standard coverage hours

Fixed amount maintenance budget backed by the financial strength of a highly rated insurance company

Expanded Program Feature Comparison

The comparison chart shows the differences between typical service contracts and Budget Guard Insurance. From expanded coverage hours to having the freedom to utilize the service vendors of your choice, you will quickly see the many advantages of Budget Guard Insurance. 

A detailed coverage comparison and comparative cost savings analysis is presented with your proposal so you can easily measure the value the Budget Guard Insurance program is bringing vs. your existing contracts and vendor arrangements.

Captive Equipment Maintenance Insurance (CEMI)

Does your organization have a captive insurance company? If so, you may be able to further reduce costs by utilizing your captive as a vehicle to finance and administer maintenance and repair costs.  

Our CEMI a great self-insuring opportunity for what is a large operating expense for most organizations and is an attractive line to diversify a captive insurance company’s risk. 

However, to establish CEMI you must develop an accurate PM and repair budget and management program. Working with your captive insurance company’s administrator, Budget Guard can design and oversee the implementation of a CEMI for you.

Get Started

Getting started on a Budget Guard Insurance program is simple and easy. The first step in reducing costs while improving your equipment management process is by gathering the appropriate information. We will assist you through each step of the process.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.

If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you.

Upload Contracts

We’ll send you a secure link to upload your pdf contract files. This eliminates large email attachments and the security issues they create.

Simply upload your contract files to the secure folder established for you.

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Upload Contracts

We’ll send you a secure link to upload your pdf contract files. This eliminates large email attachments and the security issues they create.

Simply upload your contract files to the secure folder established for you.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.
If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you.

Site Visit

An on-site (or virtual if preferred) meeting is scheduled to discuss requirements, coverage gaps, and alternative service arrangements with key managers and staff. Through an interview process, we attempt to gain insight into the general satisfaction level with the current service providers and determine the preferred method of service delivery. We also want to determine your short and long-term objectives and which of our programs best meets your needs.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.
If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you. 

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Site Visit

An on-site (or virtual if preferred) meeting is scheduled to discuss requirements, coverage gaps, and alternative service arrangements with key managers and staff. Through an interview process, we attempt to gain insight into the general satisfaction level with the current service providers and determine the preferred method of service delivery. We also want to determine your short and long-term objectives and which of our programs best meets your needs.

Final Proposal

A final proposal is presented with our findings based on our analysis and our plan to manage your equipment support through an appropriate blend of mechanisms. The proposal provides a comparative cost savings analysis so you can easily measure the value the program is bringing vs. the annual cost of your existing contracts and vendor arrangements.